Having the right insurance coverage for your cargo company means understanding the risks that you face and working with a broker who can help you cover those risks. One type of coverage that no everyone will realize is needed is contingent cargo liability insurance. These plans cover accidental cargo damage which the cargo insurance company declines to pay. Having this type of liability coverage can make it safer to operate your business as well as keep it in the black in an accident.
You can find contingent cargo liability coverage by talking to your broker and going over your particular risks. This insurance is usually carried by transport brokers to cover any gaps between what the shipping company and the consumer have and can keep you from going bankrupt due to damages. By sitting down with your insurance agent, you can go over the risks involved in your business, such as moving large or expensive items, and how much coverage you need for those risks.
Contingent cargo liability insurance is designed to help transport brokers cover any damages they are deemed liable for. In your case, this may mean any damage that the shipping company’s insurance and the customer’s insurance refuses to pay. Having good coverage for that gap can mean the difference between staying in business and going bankrupt if there is an accident.